The Infosys whistleblower letter dated September 20 has raised suspicions of insider trading. Over September 20-25, the Infosys stock witnessed heavy activity in the cash as well as in the derivatives segments of NSE and BSE.
On September 20, on the BSE, Infosys fell 2% to Rs 805, while on September 23 it fell 5% to Rs 765. It’s interesting to note that these were the two days when the stock market was boosted by the finance minister’s announcement about a massive cut in corporate taxes, and the sensex had rallied over 3,000 points.
The sharp fall in Infosys was accompanied by an equally sharp spike in volumes on both NSE and BSE. On the NSE, on September 20, volumes spiked more than three times the previous session, while a volume spike of similar magnitude was recorded on the BSE on September 23. During those two days, most IT stocks had closed only marginally negative since there was not much positive from the FM’s fiscal sops for software exporters.